Difficult Times for GE
CBJ — General Electric CEO Larry Culp has announced the company has cut its quarterly dividend to a penny a share and plans to restructure its power unit as an accounting probe deepens.
The U.S. Securities and Exchange Commission and Department of Justice have widened their investigations to include a $22-billion write-down of goodwill from GE’s power division.
This latest round of restructuring comes as the 126-year-old company attempts to recover from a number of bad decisions that have eroded profits and forced it to announce more than $40 billion in write-downs in less than a year.
GE all but eliminated its quarterly dividend of 12 cents a share to conserve $3.9 billion in cash knowing full well that it will miss its full-year cash flow target of about $6 billion.
General Electric was once the largest company in the United States.